Deputy Minister of Russia reveals
Last week, the food exhibition “Gulfood 2024” was held in Dubai, United Arab Emirates, where products were exhibited by companies from all over the world. Parallel to the big event, smaller events were also held, including the forum of the Union of Russian Grain Exporters. The organizers from Russia emphasized that it is an opportunity to meet the main players in the Russian grain market. In the United Arab Emirates, the Russian grain forum was held for the second year. The minimum participation fee is 1500 euros.
The forum was opened by Oksana Luta, Deputy Minister of Agriculture of Russia. She stated in her speech: “I want to emphasize that Russia was and remains, despite all the situations that are happening now, a reliable partner.” Among the topics of the panel discussions were the export potential of Russian grain, various problems caused by Western sanctions, as well as the transition to direct cooperation with Russia-friendly countries.
Latvia is widely represented
In the list of participants of the forum, 13 organizations are noted to be from Latvia. Several well-known Latvian port terminals, logistics companies, also one cargo insurer, as well as the trader “Avrora Baltic” already mentioned in previous broadcasts. The company is particularly distinguished by its large turnover. In 2022, i.e. after the Russian invasion of Ukraine, it increased three times to less than 180 million euros. The company did not answer Latvian Television’s questions about business growth and trade with Russia.
The other forum participants from Latvia were “MG Trade”, “Danir 19”, “Riga Bulk Terminal”, “Alpha Osta”, “Ventspils Grain Terminal”, “RIX Shipmanagement”, “Modus Commodity Service”, “BSG Terminal”, ” Pro Logistics Consultancy DWC”, “Incolab Services”, “SGS Vostok”, “Hydrogenium”. Latvijas Televīzija tried to contact the largest companies in terms of turnover.
After “Avrora Baltic”, the largest turnover in 2022 was “MG Trade” – 19.8 million euros, and “Danir 19” – 16.7 million euros. Uldis Pirktiņš, chairman of the board and co-owner of MG Trade, after hearing what the question was about, replied that there would be no comments from MG Trade. On the other hand, “Danir 19” board member Romāns Vanags interrupted the telephone conversation at the moment of asking the question.
“Latraps” not being able to influence “Alpha Osta”.
The company “Alpha Osta” working in the port of Riga has been widely discussed in the media so far. The largest owner is temporarily the agricultural cooperative “Latraps”. In December last year, “Latraps” announced that it opposes cooperation with Russia and demanded that “Alpha Osta” stop serving Russian cargo. Now, when asked why “Alpha Osta” is participating in the grain conference organized by Russia, “Latraps” replied in writing that the company itself should be asked: “In implementing its position, LATRAPS has stopped cooperation with SIA “Alpha Osta”. Regarding the operational activities of SIA “Alpha Osta”, I invite you to contact the representatives of SIA “Alpha Osta”.
“Latraps” has not disappeared from the circle of owners. In an earlier interview with Latvian Television, member of the council of “Latraps” and head of “Zemnieku Saeima” Juris Lazdiņš said that “Latraps” cannot tell “Alpha Osta” what to do, as it is limited by the agreement concluded between the shareholders.
“Legal conditions prevent us as a shareholder from stopping operational activities in the port,” said Lazdiņš. On the other hand, when asked why “Latraps” started opposing the transshipment of Russian grain only at the end of last year, and not earlier, Lazdins answered: “First of all, the volumes were very small, and it seemed that the geopolitical situation would change much faster than it is now. Therefore, no action was taken.
LTV called the chairman of the board of “Alpha Osta” Igor Pedo. Before the previous Saeima elections, he donated six thousand euros to the party “Latvia First” led by Ainārs Šleser. When he started the question about the transit of Russian grain, he interrupted the conversation.
Membership is based on prospecting and market research
The choice to participate in the conference and trade with Russia was explained in detail by the chairman of the board of “Ventspils Grain Terminal”, former member of the Ventspils City Council, Vladislavs Šafranskis. He has represented both the “Concord Center” and the Reform Party in the Duma. Shafranski said that “Ventspils Grain Terminal” is looking for business contacts at the Russian Grain Forum: “Not only Russian agricultural producers, but also producers from Kazakhstan and other countries participate in this event. We are looking for new contacts. [..] I think it is in the interest of our country to attract as many of these cargoes as possible to ensure economic development. In addition, I believe that it is better that we, Latvia, earn this money.”
On the other hand, when asked about ethical considerations in business with Russia, Shafranskis answered: “Ethical or unethical question, you have to look at it in the international context. The grain that goes from Russia through Latvia goes to Central African countries in large quantities, where people lack funds, where people are starving.”
Among the participants of the grain forum with a significant turnover is “Riga Bulk Terminal”. Raimonds Kisiels, president of the Latvian Automobile Federation, is listed as the real beneficiary in the Enterprise Register. He donated 6,000 euros to the “United List” before the previous Saeima elections. Kisiel said that the company met with Central Asian clients at the forum organized by Russia, as well as studied competitors and market trends.
“Business is business. Must be up to date on everything. The business is already making money. He must know what is happening, where the markets are, who is driving where. It’s easy for you journalists to say why, why. In business, you should already know everything that is happening. If you are dealing with that topic, you should have information about everything – where are the markets that lead to Egypt, which lead to Africa,” said Kisiel, while emphasizing that “Riga Bulk Terminal” itself does not load Russian grain.
Regarding his attitude towards trade with Russia, Kisiel said: “Understand, it’s an absurd situation. If France, Germany will buy, and one country will not, that [neko] will not change. The Latvian market is already a staple in its background.”
Meanwhile, “RIX Shipmanagement” stated in a written response that the main goal of the company’s representatives in Dubai was the “Gulfood 2024” exhibition, while the company participated in the Russian grain forum, as it was visited by both existing and potential customers from Kazakhstan, Switzerland, and Turkey.
An import ban will not stop the cargo
This week, the Saeima decided to ban the import of agricultural products from Russia and Belarus, but it will not significantly affect logistics companies. It will still be allowed to bring production through Latvia in transit, as well as to clear customs in Latvia and bring it to other European Union member states. The Ministry of Agriculture stated in the Saeima commission that, at least in the grain category, the ban of the Saeima would apply to only 1.4% of cargo imported from Russia. Exactly which Russian products will not be allowed to be used in Latvia will be determined by the Cabinet of Ministers.
2024-02-25 19:59:15
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